Private equity firm KCPS Satellite Communications, LP (KCPS) has made a purchase offer to shareholders of Gilat Satellite Networks Ltd. (Nasdaq: GILT; TASE: GILT) to buy 5% of Gilat's shares at $3.65 per share, net to the seller.
KCPS is a limited partnership headed by KCS Private Equity Partners 1, L.P., an Israeli limited partnership that is part of private equity fund KCS Private Equity I Fund. KCS invests primarily in Israeli companies, and York holds more than a 35% interest in KCS Private Equity I Fund.
Gilat's largest shareholder is a group of investment funds, led by York, which owns 20.2% of the company. KCPS does not currently own shares in Gilat. However, it has signed a voting agreement with York, so under Israeli Securities Law, KCPS and York are considered as jointly owning the 20.2% of Gilat shares currently held by York. As such, in order for KCPS to purchase Gilat shares that would increase KCPS’s voting power (together with that of York) of Gilat to 25% or more, the offer is conducted as a “special tender offer” meeting the requirements of Israeli law.
The deadline for Gilat shareholders to respond to the offer is July 9.
Gilat shares closed on Nasdaq yesterday at $3.53. In fact, on Friday, June 5, the last trading day on Nasdaq before commencement of the offer, the closing sale price of the Gilat shares was $3.66. It represents a premium of less than 4% on yesterday's close. In after hours trading, the share rose to $3.68.
KCPS is offering to buy about 2 million shares, for a total of approximately $7.3 million, at a company value for Gilat of $146 million..
Published by Globes [online], Israel business news - www.globes-online.com - on June 9, 2009
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